Workers deserve more! Labor need to deliver real reform to fix NSW’s failing compensation system

Today in Parliament, Abigail spoke in support of the State Insurance and Care Governance Amendment Bill while critiquing its limited scope and highlighting the dire state of the workers compensation regime and the urgent need for meaningful reform.

Abigail said:

In the interests of time, I will be brief. As The Greens' work health and safety spokesperson, I support the State Insurance and Care Governance Amendment (Governance Arrangements) Bill 2024. I say this with all possible kindness and goodwill, which I always show to the Labor Government: This is a very underwhelming piece of legislation. We all know how sorry the state of affairs is for injured workers in our State, and I do not envy the Minister her job in reforming the troubled workers compensation regime. I fear that we are not coming close to making the radical reform that is so desperately needed.

In fact, let us forget about radical reform. At this point I would settle for genuine reform. This is the third icare governance bill brought to the Parliament. Prior to this one, the most recent reforms provided for the appointment of an employee-nominated director and the establishment of principal objectives. The Government is clearly trying to reform what is an ailing public insurer. However, it is unclear how much will ultimately be achieved by changes to board composition and aims. It may be that more substantive and structural reform is needed to make sure that our workers compensation system is truly fit for purpose.

A vast portfolio of insurance schemes is managed by icare, including workers compensation, dust diseases, lifetime care and builders warranty insurance. With approximately $49 billion in assets under management including the Treasury Managed Fund [TMF], icare's financial health and operational efficiency have significant implications for the State's economy and workforce.

We do have concerns about the increasing influence of Treasury over icare and the possibility that this consolidation of power will allow Treasury to obscure the Government's failure to properly contribute to the TMF to compensate government employees. The Greens did indicate that we would move amendments, which we will withdraw on the basis that the Parliamentary Secretary indicated that the Government will introduce more significant reforms in the first half of next year.

The amendments that we proposed are just two examples of the low-hanging fruit in this area. If the death benefits amendments from the lapsed State Insurance and Care Legislation Amendment Bill 2022—which the then Coalition Government put up and which was broadly agreed to—were implemented today, they would make such a massive difference to people stuck in the system at the moment. Similarly, removing pre-injury average weekly earnings from the definition of work capacity decisions would be so beneficial.

We proposed those amendments as a little push because they are changes we could make today. I know that the Government is working through those issues. I have a lot of goodwill towards the Minister in this area, but I do worry that we are moving far too slowly. There is far too much tinkering and not enough significant reform. That said, I am reassured by the Government's response. I look forward to working with the Government, workers representatives and the unions to make sure that, in the first half of next year, we introduce significant reforms that can make a real difference to people's lives.

 

Read the full transcript in Hansard here.

 

21 November 2024

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